Analysis by an industry leader has examined how the type of borrower affects the likelihood of a mortgage default

The New Year looks to be shaping up in a familiar fashion for housing, with Sydney set to lead the way.

Economists have tipped Sydney to outperform all other housing markets in 2015, The Australian Financial Review has reported. Sydney housing values are up nearly 13% since January according to the most recent CoreLogic RP Data Daily Home Value Index, and Domain senior economist Andrew Wilson told The AFR the city was likely to remain the best performer in the New Year.

“A top-performing local economy and the continued undersupply of housing will generate consistent buyer activity over the year. Inner and middle ring mid-price range suburban regions are set to continue to record double-figure prices growth,” he said.

Wilson told The AFR that house price growth for most capitals was likely to be modest, “hovering around the inflation rate”.